UK could face credit rating downgrade over EU vote

The UK could see its credit rating drop further in the event that it votes to leave the EU.

This is according to Moody’s and Standard & Poor, two leading rating agencies. Standard & Poor changed the UK’s outlook to ‘negative’ last week, amid concerns about the referendum.

In a press release, the agency said: “We believe the UK government’s decision to hold a referendum on EU membership by 2017 indicates that economic policymaking could be at risk.

“There are important risks to the UK’s longer-term economic prospects should it leave the EU.”

Meanwhile Moody’s said the UK’s withdrawal from the EU, known as a ‘Brexit’, would “worsen the UK’s trade position and, through that, medium-term growth.”

Economists and commentators have suggested that a Brexit would make it more difficult for the UK to secure finance, particularly given its current account deficit.

The EU accounts for around 13 per cent of the UK’s annual GDP.

What do you think? Should the UK leave the EU? Let us know in the comments.

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